Strathfield finding it tough: profit down 91%, share price crashes

By Patrick Avenell

The Strathfield Group is thanking its lucky iPhones today, after the owning group of Strathfield Car Radios fell across the line to post a $300,000 profit for FY08.

In what is an impressive turnaround from the combined $10.8 million losses for FY05 and FY06, the Strathfield Group reported the profit posting to the ASX along with a notice concerning the group’s upcoming annual general meeting. Although in the black, net profit after tax was down $3.1 million, or 91 per cent on FY07.

Total operating revenue was $164.1 million, down 4 per cent, and underlying EBITDA was $6.2 million, down 25 per cent. During the course of FY08, the Strathfield Group’s share price took an alarming dive, dropping 1.7 cents, and 43 percent, to 2.2 cents.

Strathfield Group director John Fries described this performance as “acceptable in poor retail conditions,” noting that the group is continuing to work on restructuring and rejuvenation following the disastrous losses from earlier this decade.

“The board continues to strive for improvement in operations and continues to restructure the business,” wrote Fries.

“Encouragingly, the mobile phone division is performing strongly. Further improvement and growth is anticipated following the successful launch of the Apple iPhone through Optus in July 2008.”

In other Strathfield Group news, the group has confirmed it has conditional agreements to acquire Clear Equipment Group and m8 Telecom.

Strathfield Group was trading at 1.6 cents – down 33 per cent – just before 2pm today.

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